HRDF Scheme Saudi Arabia Employers 2025 — Human Resources Development Fund Salary Subsidy Explained
HRDF (Human Resources Development Fund) is the Saudi government salary subsidy scheme for private sector Saudi National hires. MHRSD (Ministry of Human Resources and Social Development, the Saudi federal body responsible for private sector employment regulation and Saudization enforcement) administers HRDF to reduce the net cost of Saudization compliance for private sector employers. Every HRDF-supported Saudi National hire counts toward the company’s Nitaqat band calculation. HRDF is the Saudi equivalent of the NAFIS scheme in the UAE — both are salary support programmes but they operate under separate legal frameworks, different eligibility criteria, and different subsidy amounts. Never conflate HRDF with NAFIS.
What Is HRDF? The Saudi Human Resources Development Fund Explained
HRDF (Human Resources Development Fund) is the Saudi Arabian government programme that provides monthly salary support for Saudi National employees hired in the private sector. HRDF is administered by MHRSD and operates through the hrdf.com.sa portal. The programme’s primary purpose is to reduce the net employer cost of Saudization compliance by subsidising a portion of each qualifying Saudi National’s monthly salary for a defined period.
HRDF is structurally different from Saudi Arabia’s other workforce development schemes. It is specifically designed to make private sector employment cost-competitive for Saudi Nationals who might otherwise prefer government sector positions. The subsidy reduces the effective monthly payroll cost per Saudi National hire, narrowing the gap between Saudi National and equivalent expatriate hire costs.
HRDF is not the same as NAFIS. NAFIS (National Programme for Emiratisation) is the UAE equivalent, administered by MoHRE for UAE private sector Emirati hires. HRDF and NAFIS are parallel schemes in two different countries with different eligibility rules, subsidy structures, and governance frameworks. For the UAE scheme, see the NAFIS salary support scheme UAE employers page.
HRDF Eligibility: Which Employers and Which Saudi Nationals Qualify
Employer eligibility: the company must be registered in Saudi Arabia as a private sector employer, active on the Qiwa platform, and current with GOSI contributions. Public sector and quasi-government entities do not qualify for HRDF.
Saudi National eligibility: the employee must be a Saudi National citizen, registered with GOSI from the first day of employment, employed in a role that meets MHRSD’s minimum salary threshold for Saudization qualifying roles, and not previously employed by the same company under a prior HRDF claim. The employee must not be a close relative of the company owner where MHRSD’s conflict-of-interest rules apply.
Role eligibility: the role must meet the minimum monthly salary threshold that MHRSD sets for qualifying Saudization roles. A Saudi National employed below this threshold does not qualify for HRDF support and does not count toward the company’s Nitaqat band. For the current salary threshold, see the qualifying roles for Saudization page.
Register for HRDF before the hire starts, not after. HRDF subsidy is activated from the Saudi National’s employment start date — not from the date of HRDF application. If you apply after the employee has been working for several weeks, you lose those weeks of subsidy. Begin HRDF registration as soon as you confirm the offer to the Saudi National candidate.
HRDF Cost Offset: Worked Example Showing Net Employer Cost After Subsidy
HRDF Net Cost Example — Financial Services Analyst, Riyadh
Saudi National Financial Analyst basic monthly salary: SAR 8,000
HRDF monthly subsidy (example — verify current rates at hrdf.com.sa): SAR 2,000/month
Net employer monthly payroll cost after HRDF: SAR 6,000/month
Comparable expatriate Financial Analyst basic monthly salary: SAR 7,000–10,000/month
HRDF subsidy on expatriate hire: SAR 0 (HRDF applies to Saudi Nationals only)
Net advantage of Saudi National hire with HRDF: SAR 1,000–4,000/month vs equivalent expatriate
The HRDF subsidy continues for the duration of the programme eligibility period. An employer with 10 Saudi National hires all receiving HRDF support at SAR 2,000/month saves SAR 20,000/month — SAR 240,000/year — in payroll cost compared to the same headcount without HRDF. This saving partially or fully offsets the RFS placement fee for those positions within the first year of employment.
HRDF Application Process: How to Register and Claim the Subsidy
Step 1: The employer logs into the hrdf.com.sa portal using the company’s Absher or Muqeem credentials. Step 2: The employer registers the new Saudi National hire with GOSI before or on the first day of employment. Step 3: The employer submits an HRDF subsidy application through the portal, providing the employee’s National ID, GOSI number, role title, and monthly salary. Step 4: MHRSD reviews the application — standard processing time is approximately 5 to 10 business days. Step 5: Upon approval, HRDF pays the monthly subsidy directly to the employer’s registered bank account on a monthly cycle for the approved duration.
RFS HR Consultancy assists clients in completing the HRDF registration process for every Saudi National placement as part of the standard placement service. For full placement and HRDF support details, see the RFS Saudization recruitment service Saudi Arabia page.
HRDF and Nitaqat Band: Does an HRDF-Supported Hire Count Toward Saudization?
Yes. An HRDF-supported Saudi National hire counts toward the company’s Nitaqat band calculation in exactly the same way as a Saudi National hired without HRDF support, provided the hire meets MHRSD’s qualifying criteria — correct GOSI registration and salary threshold. HRDF support does not change the qualifying status of the hire. It only changes the net employer payroll cost.
This means HRDF achieves two Saudization outcomes simultaneously: it improves the company’s Nitaqat band position and reduces the payroll cost of achieving that improvement. A company using HRDF for all qualifying Saudi National hires pays less per hire and meets its Saudization target more efficiently than a company not registered for HRDF.
HRDF Registration + Saudi National Placement — RFS Handles Both
RFS HR Consultancy assists clients in HRDF registration alongside every Saudi National placement — ensuring the subsidy is active from day one and every qualifying hire counts toward your Nitaqat band.
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Is HRDF available to all private sector companies in Saudi Arabia?
HRDF is available to private sector companies registered in Saudi Arabia that are active on the Qiwa platform and current with GOSI contributions. It is not available to public sector bodies, quasi-government organisations, or companies that are suspended from MHRSD services due to Nitaqat non-compliance.
How long does HRDF salary support last per Saudi National hire?
HRDF support duration varies by programme type and applicant profile. The standard Saudization support programme provides subsidy for a defined period — employers should verify the current duration for their specific programme type at hrdf.com.sa as HRDF periodically updates its programme terms under Vision 2030 workforce targets.
Can the same employee be claimed for HRDF by the same employer twice?
No. HRDF subsidy for a specific Saudi National employee can only be claimed once by the same employer. If the employee leaves and is rehired, a new HRDF claim is not available for the same person at the same company. HRDF is designed to encourage net new Saudi National hiring, not rehiring of previously subsidised employees.
What is the difference between HRDF and NAFIS?
HRDF is the Saudi Arabian salary subsidy scheme administered by MHRSD for Saudi National hires in the Saudi private sector. NAFIS (National Programme for Emiratisation) is the UAE salary subsidy scheme administered by MoHRE for UAE National (Emirati) hires in the UAE private sector. They are separate programmes in different countries with different eligibility criteria, subsidy amounts, and governance frameworks. A company operating in both Saudi Arabia and the UAE must register for both schemes separately.